An additional insured is a person you add to your insurance policy (not related to you by blood, marriage, or adoption) who lives with you and/or has a financial interest in your place.
Who is an additional insured?
An additional insured refers to a person added on to an insurance policy who has an ownership interest in the property, but isn’t the policyholder or someone related to them by blood, marriage, or adoption.
This includes people with a financial interest in the policyholder’s place to the extent that if something happened, they’d be affected, as well as others living at the policyholder’s address but not covered by their policy.
Why you’d want to add an additional insured?
While your policy already covers those related to you by blood, marriage, or adoption who are living in your household, there are a few cases where adding an additional insured might come in handy:
- If you’re living with a partner, but decided not to take the marriage plunge
- If you’re living with a relative that isn’t a first degree relation
- If someone else owns a part of your place but isn’t living with you
Coverage amounts and adding an additional insured
More people means more stuff and or a higher chance of bad things happening to those you love – things like getting sued, or having to pay legal fees as the result of an accident.
Stuff happens (that’s life), and you’ll want to be as prepared as possible.
When adding an additional insured to your policy, keep in mind that the amount of cover you have may not be enough for everyone.
To figure out how much cover to pick, think about how much of a larger monthly premium you’re willing to pay now versus what you may have to pay in the future, and choose a number that makes sense for you.